Restricted Funds

Fund Accounting

Alignmint provides true fund accounting - not just tags or classes like generic accounting software.

Fund Types

• Unrestricted: Resources that can be used for any purpose (general operating)
• Temporarily Restricted: Resources restricted by donors for a specific purpose or time period
• Permanently Restricted: Resources that must be maintained permanently (endowments)

Why Fund Accounting Matters

Fund accounting ensures proper stewardship of donated resources and compliance with donor restrictions. It's required for:

• Financial statements that meet nonprofit accounting standards
• Form 990 reporting
• Grant compliance
• Donor accountability

Releasing Restrictions

When restrictions are met (purpose fulfilled or time passed), funds are released from temporarily restricted to unrestricted.